JPMorgan beats estimates on strong trading, underwriting
Reuters | Tue, January 14, 2020 07:23 EST
(Reuters) - JPMorgan Chase & Co
Net income at the United States' largest bank rose to $8.52 billion, or $2.57 per share, in the quarter ended Dec. 31, from $7.07 billion, or $1.98 per share, a year earlier. Net revenue rose 9% to $29.21 billion. (https://bit.ly/36Okhjg)
Analysts on average had expected the bank to earn $2.35 per share on revenue of $27.94 billion, according to Refinitiv data.
JPMorgan's shares were up nearly 2% in pre-market trade.
Strength in bond trading boosted overall trading revenue, allaying concerns about the impact of the U.S.-China trade dispute and slowing global growth.
"While we face a continued high level of complex geopolitical issues, global growth stabilized, albeit at a lower level, and resolution of some trade issues helped support client and market activity towards the end of the year," JPMorgan Chief Executive Officer Jamie Dimon said in a statement.
Fixed income trading revenue surged 86% to $3.4 billion compared with a year ago when choppy trading conditions hit bond markets. Revenue from equity markets rose 15% to $1.5 billion.
The robust showing at the bank's trading desk offset a surprise weakness in consumer banking.
Consumer and business banking revenue fell 2% to $6.4 billion, hurt mainly by lower deposit margins. Home lending revenue was down 5% to $1.3 billion.
Total loans, excluding home lending, rose 3% in the quarter. Home loans were down 17%.
JPMorgan's results kick off the earnings season for U.S. banks and are widely seen as a barometer of the health of the economy. Wells Fargo & Co
(Reporting by Anirban Sen in Bangalore and Elizabeth Dilts Marshall and Sweta Singh in New York; Editing by Saumyadeb Chakrabarty)
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